1.

(a) 150560+3500-78000-36000=40060
(b) 329000+3500-3500-78000-1750-2400-7000=239850
2. Accrural, as it indicates the company's true value
1: Prepare Journal Entries                          Dr                 Cr
(1) Jul 1, 2022 Prepaid Insurance 5,400
Cash 5,400
Dec 31, 2022 Insurance Expenses 900
Prepaid Insurance 900

(2) Feb 1, 2022 Prepaid Taxes 2,400

Cash 2,400
Dec 31, 2022 Taxes Expenses 2,200
Prepaid Taxes 2,200

(3) May 1, 2022 Prepaid Subscription 360

Cash 360
Dec 31, 2022 Sub Expenses 80
Prepaid sub 80

(4) Sep 15, 2022 Cash 3,600

Unearned Rev 3,600
Dec 31, 2022 Unearned Rev 700
Consulting Rev 700

(5) Nov 1, 2022 Cash 900

Unearned Rent 900
Dec 31, 2022 Unearned Rent 300
Rental Income 300

(6) Nov 1, 2022 Cash 14,400

Unearned Interest income 14,400
Dec 31, 2022 Unearned interest 600
Interest Income 600
 Debit Credit
(a) Dec 31, 2022 Salary Expenses 17,840
Salary Expenses Payable 17,840

(b)Dec 31, 2022 Interests Expenses 5,225

Interests Expenses Payable 5,225

(c) Dec 31, 2022 Rent Expenses 6,000

Prepaid Rent 6,000

(d) Dec 31, 2022 Unearned Rev 33,900

Rent Income 33,900

(e ) Dec 3 1, 2022 Insurance Expenses 2,400

Prepaid Insurance 2,400

(f) Dec 31, 2022 Interest Receivable 400

Interest Income 400